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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500830 | NSE: COLPAL

Fundamental Analysis of Colgate-Palmolive (India) Ltd

About the Company - Colgate-Palmolive (India) Ltd

Colgate-Palmolive (India) Ltd. is a Public Limited Listed company incorporated on 23/09/1937 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24200MH1937PLC002700 and registration number is 002700. Currently Company is involved in the business activities of Manufacture of other chemical products. Company’s Total Operating Revenue is Rs. 5099.78 Cr. and Equity Capital is Rs. 27.20 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Personal CareColgate Research Centre, Main Street, Mumbai Maharashtra 400076investors_grievance@colpal.com
http://www.colgatepalmolive.co.in
Management
NamePosition Held
Mr. Mukul DeorasChairman
Ms. Shyamala GopinathInd. Non-Executive Director
Ms. Sukanya KripaluInd. Non-Executive Director
Dr.(Ms.) Indu ShahaniInd. Non-Executive Director
Mr. Vikram Singh MehtaInd. Non-Executive Director
Mr. Surender SharmaWhole Time Director
Mr. Sekhar NatarajanInd. Non-Executive Director
Ms. Gopika PantInd. Non-Executive Director
Mr. M S JacobWholeTime Director & CFO
Ms. Prabha NarasimhanManaging Director & CEO

Basic Stock Data of Colgate-Palmolive (India) Ltd

Last Updated: June 21, 2024, 12:14 pm

Market Cap 77,234 Cr.
Current Price 2,840
High / Low3,069/1,625
Stock P/E57.8
Book Value 68.9
Dividend Yield1.69 %
ROCE96.8 %
ROE74.5 %
Face Value 1.00
PEG Ratio6.38

Competitors of Colgate-Palmolive (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ador Multi Products Ltd 16.5 Cr. 35.353.0/29.1 23.60.00 %37.6 %28.3 % 10.0
Procter & Gamble Hygiene and Health Care Ltd 52,547 Cr. 16,18819,250/13,94370.5 3240.65 %101 %80.6 % 10.0
JHS Svendgaard Laboratories Ltd 169 Cr. 21.539.5/15.5 21.70.00 %1.66 %2.37 % 10.0
Godrej Industries Ltd 27,806 Cr. 826990/468464 2380.00 %5.94 %0.75 % 1.00
Dabur India Ltd 1,07,872 Cr. 609634/48959.6 55.70.85 %22.3 %19.2 % 1.00
Industry Average74,004.72 Cr2,762.6772.60211.050.49%33.72%20.07%6.73

Colgate-Palmolive (India) Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,2321,2831,1661,3521,2801,3011,1971,3871,2911,3511,3241,4711,396
Expenses861861811952900872871979930899906989927
Operating Profit371422355401381429326408361452418482468
OPM %30%33%30%30%30%33%27%29%28%33%32%33%34%
Other Income10757692111018-52118
Interest2222211111112
Depreciation46454545444444444443444441
Profit before tax333381314361341393282374327426369458443
Tax %25%17%26%25%26%18%26%26%26%26%26%26%26%
Net Profit248315233269252324210278243316274340330
EPS in Rs9.1311.578.589.909.2811.907.7110.228.9411.6310.0612.5012.14

Colgate-Palmolive (India) Ltd Quarterly Chart

Colgate-Palmolive (India) Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,6933,1643,5793,9823,8683,9824,1884,4624,5254,8415,1005,2265,437
Expenses2,1152,5052,9153,1592,9293,0383,0743,2263,3233,3313,5343,6793,723
Operating Profit5796596648239409441,1141,2361,2021,5101,5661,5471,714
OPM %21%21%19%21%24%24%27%28%27%31%31%30%32%
Other Income51481153274126684930264245
Interest20000002107654
Depreciation39445175111133157159198182177175175
Profit before tax5886637287808358519831,1431,0431,3501,4091,4101,580
Tax %24%25%26%28%30%32%32%32%22%23%23%26%
Net Profit4464975405595815776737768161,0351,0781,0471,173
EPS in Rs16.4118.2619.8520.5521.3721.2324.7628.5230.0238.0739.6538.5043.13
Dividend Payout %76%77%68%58%47%47%97%81%93%100%101%101%

Colgate-Palmolive (India) Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)11.43%8.65%3.52%3.94%-0.69%16.64%15.30%5.15%26.84%4.15%-2.88%
Change in YoY Net Profit Growth (%)0.00%-2.78%-5.13%0.42%-4.62%17.33%-1.33%-10.15%21.68%-22.68%-7.03%

Colgate-Palmolive (India) Ltd Growth

Compounded Sales Growth
10 Years:5%
5 Years:5%
3 Years:5%
TTM:9%
Compounded Profit Growth
10 Years:11%
5 Years:12%
3 Years:9%
TTM:27%
Stock Price CAGR
10 Years:14%
5 Years:18%
3 Years:16%
1 Year:65%
Return on Equity
10 Years:63%
5 Years:68%
3 Years:70%
Last Year:75%

Last Updated: May 31, 2024, 5:41 am

Colgate-Palmolive (India) Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital14141414272727272727272727
Reserves4224765867571,0041,2471,4971,4201,5671,1391,7071,6891,736
Borrowings00000008310291836969
Other Liabilities6948178949329721,0371,0391,0979081,6371,0841,0981,276
Total Liabilities1,1301,3071,4931,7022,0032,3112,5642,6262,6042,8942,9022,8833,108
Fixed Assets2542815567821,0081,1081,1461,1911,1231,065963862815
CWIP6910214214178167159199190145122114123
Investments47473737313131311919000
Other Assets7598777597428851,0051,2281,2061,2721,6661,8171,9072,169
Total Assets1,1301,3071,4931,7022,0032,3112,5642,6262,6042,8942,9022,8833,108

Colgate-Palmolive (India) Ltd Reserves and Borrowings Chart

Colgate-Palmolive (India) Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 4036154576386896886949839307841,6261,176
Cash from Investing Activity -10-47-180-272-237-342-207-96-1971-108-8
Cash from Financing Activity -398-428-422-385-391-341-380-815-891-956-1,091-1,087
Net Cash Flow-5140-145-186151077320-10142782

Colgate-Palmolive (India) Ltd Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow579.00659.00664.00823.00940.00944.001.00-82.00-101.00-90.00-82.00-68.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Colgate-Palmolive (India) Ltd Free Cash Flow Chart

Colgate-Palmolive (India) Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days12966101218171191611
Inventory Days765459637272565869797868
Days Payable128136130128136148152144142179169155
Cash Conversion Cycle-41-73-65-59-55-63-79-68-63-91-75-76
Working Capital Days-34-49-47-40-43-39-33-36-21-83-24-31
ROCE %144%144%122%114%96%74%71%73%65%92%92%79%

Colgate-Palmolive (India) Ltd Financial Efficiency Indicators Chart

Colgate-Palmolive (India) Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters51.00%51.00%51.00%51.00%51.00%51.00%51.00%51.00%51.00%51.00%51.00%51.00%
FIIs18.61%19.14%18.02%18.64%18.70%19.46%21.11%21.50%21.80%24.08%24.62%24.51%
DIIs8.21%7.42%8.17%8.07%8.83%8.99%7.55%7.34%7.52%5.59%5.60%5.82%
Government0.28%0.28%0.28%0.28%0.29%0.28%0.28%0.28%0.28%0.28%0.28%0.28%
Public21.89%22.16%22.53%22.01%21.19%20.25%20.05%19.87%19.41%19.03%18.50%18.38%
No. of Shareholders2,36,6842,54,9333,07,1013,07,5862,84,8492,75,5242,72,8622,66,8272,52,9552,37,9072,38,2002,31,061

Colgate-Palmolive (India) Ltd Shareholding Pattern Chart

No. of Colgate-Palmolive (India) Ltd Shareholders

Colgate-Palmolive (India) Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Multi Cap Fund500,4730.49135.65341,3212024-06-2046.63%
Nippon India Large Cap Fund497,5940.55134.87341,3212024-06-2045.78%
Franklin India Prima Fund450,0001.21121.97341,3212024-06-2031.84%
NJ Balanced Advantage Fund345,3812.3693.61341,3212024-06-201.19%
Nippon India ETF Nifty Next 50 Junior BeES341,3211.9892.51341,3212024-06-200%
NJ Flexi Cap Fund187,2464.6850.75341,3212024-06-20-45.14%
Franklin India Equity Advantage Fund169,4581.4645.93341,3212024-06-20-50.35%
Axis Growth Opportunities Fund123,1670.2833.38341,3212024-06-20-63.91%
Baroda BNP Paribas Midcap Fund105,0001.5928.46341,3212024-06-20-69.24%
Templeton India Equity Income Fund100,0001.3127.1341,3212024-06-20-70.7%

Colgate-Palmolive (India) Ltd ROCE Trend

Colgate-Palmolive (India) Ltd EPS Trend

Colgate-Palmolive (India) Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)38.5039.6538.0730.0228.52
Diluted EPS (Rs.)38.5039.6538.0730.0228.52
Cash EPS (Rs.)44.9346.1644.7837.3034.37
Book Value[Excl.RevalReserv]/Share (Rs.)63.1163.7842.8658.6153.19
Book Value[Incl.RevalReserv]/Share (Rs.)63.1163.7842.8658.6153.19
Dividend / Share (Rs.)39.0040.0038.0028.0023.00
Revenue From Operations / Share (Rs.)192.15187.50178.00166.37164.07
PBDIT / Share (Rs.)58.8558.5456.6245.9946.83
PBIT / Share (Rs.)52.4252.0249.9138.7140.98
PBT / Share (Rs.)51.8351.8049.6438.3642.01
Net Profit / Share (Rs.)38.5039.6538.0730.0228.52
PBDIT Margin (%)30.6231.2231.8027.6428.54
PBIT Margin (%)27.2827.7428.0423.2624.97
PBT Margin (%)26.9727.6227.8923.0525.60
Net Profit Margin (%)20.0321.1421.3818.0417.37
Return on Networth / Equity (%)61.0062.1688.8051.2153.60
Return on Capital Employeed (%)79.2877.76106.3860.7370.74
Return On Assets (%)36.3237.1535.7731.3529.52
Long Term Debt / Equity (X)0.000.000.000.000.05
Total Debt / Equity (X)0.000.000.000.000.05
Asset Turnover Ratio (%)1.811.761.761.731.72
Current Ratio (X)1.431.370.841.160.96
Quick Ratio (X)1.121.040.640.820.72
Inventory Turnover Ratio (X)4.313.953.954.955.59
Dividend Payout Ratio (NP) (%)101.2947.92141.8566.6291.17
Dividend Payout Ratio (CP) (%)86.8041.15120.5953.6275.65
Earning Retention Ratio (%)-1.2952.08-41.8533.388.83
Cash Earning Retention Ratio (%)13.2058.85-20.5946.3824.35
Interest Coverage Ratio (X)325.74270.10212.15130.09510.44
Interest Coverage Ratio (Post Tax) (X)216.38183.92143.6385.91299.59
Enterprise Value (Cr.)40063.9441171.9341551.3033657.2233906.44
EV / Net Operating Revenue (X)7.678.078.587.447.60
EV / EBITDA (X)25.0325.8626.9826.9126.62
MarketCap / Net Operating Revenue (X)7.848.228.767.537.67
Retention Ratios (%)-1.2952.07-41.8533.378.82
Price / BV (X)23.8824.1736.3821.3823.66
Price / Net Operating Revenue (X)7.848.228.767.537.67
EarningsYield0.020.020.020.020.02

Colgate-Palmolive (India) Ltd Profitability Ratios (%)

Colgate-Palmolive (India) Ltd Liquidity Ratios

Colgate-Palmolive (India) Ltd Liquidity Ratios (%)

Colgate-Palmolive (India) Ltd Interest Coverage Ratios (%)

Colgate-Palmolive (India) Ltd Valuation Ratios

Fair Value

Fair Value: 3,017.04

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 6.23% compared to the current price 2840

Intrinsic Value: 3,290.58

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 15.87% compared to the current price ₹2840

Last 5 Year EPS CAGR: 9.07%

*Investments are subject to market risks

Strength and Weakness of Colgate-Palmolive (India) Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 97.17%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -40.00, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -67.33, which is a positive sign.
  4. The company has higher reserves (1,172.85 cr) compared to borrowings (38.23 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (3.69 cr) and profit (418.00 cr) over the years.

    Should I Buy Colgate-Palmolive (India) Ltd Share Now?

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Colgate-Palmolive (India) Ltd:
      1. Net Profit Margin: 20.03%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 79.28% (Industry Average ROCE: 47.41%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 61.00% (Industry Average ROE: 23.85%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 216.38
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 1.12
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. ✗ Stock P/E: 57.8 (Industry average Stock P/E: 44.36)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0.00
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    FAQ

    What is the latest fair value of Colgate-Palmolive (India) Ltd?

    The latest fair value of Colgate-Palmolive (India) Ltd is ₹3017.04.

    What is the Market Cap of Colgate-Palmolive (India) Ltd?

    The Market Cap of Colgate-Palmolive (India) Ltd is 77,234 Cr..

    What is the current Stock Price of Colgate-Palmolive (India) Ltd as on 21 June 2024?

    The current stock price of Colgate-Palmolive (India) Ltd as on 21 June 2024 is ₹2,840.

    What is the High / Low of Colgate-Palmolive (India) Ltd stocks in FY 2024?

    In FY 2024, the High / Low of Colgate-Palmolive (India) Ltd stocks is 3,069/1,625.

    What is the Stock P/E of Colgate-Palmolive (India) Ltd?

    The Stock P/E of Colgate-Palmolive (India) Ltd is 57.8.

    What is the Book Value of Colgate-Palmolive (India) Ltd?

    The Book Value of Colgate-Palmolive (India) Ltd is 68.9.

    What is the Dividend Yield of Colgate-Palmolive (India) Ltd?

    The Dividend Yield of Colgate-Palmolive (India) Ltd is 1.69 %.

    What is the ROCE of Colgate-Palmolive (India) Ltd?

    The ROCE of Colgate-Palmolive (India) Ltd is 96.8 %.

    What is the ROE of Colgate-Palmolive (India) Ltd?

    The ROE of Colgate-Palmolive (India) Ltd is 74.5 %.

    What is the Face Value of Colgate-Palmolive (India) Ltd?

    The Face Value of Colgate-Palmolive (India) Ltd is 1.00.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Colgate-Palmolive (India) Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE